Fundamental forecasting requires:
A)a basic knowledge of currency value trends.
B)the use of basic mathematical analysis applied to basic economic data.
C)the construction of models that relate currency values to variable derived from economic theory.
D)the use of sophisticated computer models to predict future currency values.

Question

Quizplus · Accepted Answer

Fundamental forecasting involves constructing models that relate currency values to variables derived from economic theory. This requires a deeper understanding of the economic factors that influence currency values, such as interest rates, inflation, and economic growth. Basic mathematical analysis is part of this process, but it is not the only component, and sophisticated computer models are not necessarily required.

Fundamental Forecasting Requires